across America, the people pushing fake goods are getting ready to cash in on unsuspecting shoppers all weekend long. By next year, counterfeiting will become a trillion dollar industry worldwide. And... See More
across America, the people pushing fake goods are getting ready to cash in on unsuspecting shoppers all weekend long. By next year, counterfeiting will become a trillion dollar industry worldwide. And "20/20" right there on the inside tonight with the investigators, out to catch the counterfeiters before they dupe you. 8:00 A.M in Phoenix and they hand out pictures of their first target. This squad on the hunt for a man who they say is also selling fake makeup right out of this shoe repair shop. All right, let's go. Reporter: Even in the desert heat, we watch as the team puts on its full tactical gear, they stay undercover. They say, the best way to catch them. Ty're undercover, so they don't want everybody to see them. Reporter: They wear the gear because they never know what they're going to walk in on. Phoenix police search warrant, come out with your hands up! Phoenix police anybody in here let yourself be known! Reporter: This man is charged with operating an illegal enterprise and fraud. He's just displaying this like this because he doesn't think it's enforced. His mistake is he's in Phoenix. Reporter: We listen to the brand names. So we have Michael kors, and Chanel. Reporter: And we noticed the makeup case, it looks like it's right out of a department store. In this counter what we're looking at is counterfeit makeup. And this is a true health and safety issue. Reporter: And remember, "20/20" found the same thing back east, that makeup our team bought in New York. We took it to the lab. So cheap, we wondered was it too good to be true? And we compared it to the real thing. First, testing full price Mac makeup, buying it at an authorized store, and here are the results. We're not seeing anything of concern in respect to metals. Reporter: They told us it was perfectly safe. And we're about to get the results on the other Mac makeup, that great deal we bought elsewhere. Dr. Whitney Bowe, a dermatologist, waiting inside for me, and she's about to take us through the results. So this is the Mac that we tested? Exactly. Reporter: What did you find? We start with the lead. So the lead was at least five times higher than what you should be allowed? Yes. It was an order of magnitude higher than where we should be. Reporter: And then the copper. And think about this number. The fda limit on copper, 100 parts per million. In the makeup tested, more than 2,000 parts per million. So in this test there is so much copper that there is no question in your mind there is copper flowing through the bloodstream if you use this product. There is free copper flowing in the bloodstream, hurting kidneys and hurting the liver. It's frightening. Reporter: People have no idea they are putting real copper on their face. They are putting real copper, Reporter: But the most frightening discovery in that makeup, was the beryllium, a category 1 carcinogen. Beryllium can be a cancer causer. Beryllium is a known carcinogen. Reporter: Is this a wake-up call? This is a major wake-up call. Reporter: And tonight here, estee lauder, the company that owns Mac, confirming to "20/20" that that product we bought in nyc and just had tested was indeed a counterfeit product, and not one of their own. And those results weren't the only ones that alarmed us. Because Phoenix investigators revealed to us what they have found in those counterfeit viagra pills. Just listen. The pills were made out of road paint. The stuff you see on the roads. That's what gives it its coloration and talcum powder gave it its form. Reporter: And just watch as they take us out on a new case. A man they say is promising a good night in the sack with those little blue pills. But he's about to spend his night behind bars. Let's see what we've got here. Jacob's moved in place to meet the target. Reporter: Just watch as the customer standing there working undercover buying from the man in the driver's seat. 40 counterfeit viagra pills for a hundred bucks. It would cost him 1700 at the drug store. After the deal, we watch as the police helicopter followed the seller's moves and that alleged pill pusher is about to get pulled over. Just a few hundred feet from his $600,000 home in Scottsdale, Arizona. Aerial thank you very much for your assistance. Reporter: "20am0" ceras rolling as they count the cash they found in his car. 1,000. 2,000, 3,000, 4,000? 4,200. Reporter: The squad taking us inside, searching the house. Phoenix police. Anybody in there let yourself be known. Search warrant. Reporter: And here's what they showed us when they came out. We found all kinds of -- his inventory. And these are some of the different samples that are designed to look like levitra and viagra and Cialis and apparently, there's a lady viagra which is news to me. Reporter: The Phoenix police department confiscating more than 7,000 counterfeit pills, a retail value of $150,000. "20/20" given eye-opening video. Investigators, working with pfizer, and just look at where their drugs are being counterfeited. Factories in China, Latin America. They say India, too. All of it shipped to America. Sold in low-end stores, on the street, from people's homes. And there's someplace else. So, viagra, people are buying this online? Yeah, we've seen a real explosion online. Reporter: They take us into their operations room where they track fake websites. And look at this. Side by side, the drugs. Can you tell which bottle of viagara is real, which is fake? And it's not just adults in danger. It's parents and their children too. Babies. Look at these two websites side by side for the popular baby carrier by ergo. But this one is a complete fake. Side by side, I thought this was the real one. We get that reaction a lot. Reporter: Parents are falling for it. Those ergo baby carriers, designed in America, but the idea stolen everywhere. With no guarantee that there's anyone checking the safety of those fakes. So where do they make the fake? These fakes are made in China. Reporter: So what's the best way to tell if your baby carrier is real? If the viagara you're buying will have the intended effect, and if that make up is made up? Look at the manufacturer's website, take a look at where these companies say their products are distributed. Reporter: And there is one last stop for "20/20," back to where our shopping began. Armed with the results of that make up test, we're headed back to that New York City store where one of our producers bought that make up three weeks ago. Testing positive for lead, for copper, and for that carcinogen beryllium. How would they explain the results? I'm with 20/20 and we're rolling right now. Is this supposed to be real? I don't know. Reporter: Are you selling fake makeup? I don't have any idea. Reporter: But all this makeup is real? We ask her, does she remember selling the so-called Mac product to us? We were rolling three weeks ago when we sent our producer in. Do you remember working with her? I don't know. Reporter: Do you remember her face? I bought this from you, remember? Reporter: And how does she explain the test results? But look at the test results. Lead copper, beryllium. These are cancer causing agents. Oh. Reporter: And we reveal to her what estee lauder, the maker of Mac, told us about that case of eye shadow. And Mac told us this is not the real thing. They told us they've never even sold eye shadow in a box like this. I don't know. I don't have any idea. Can I see the paper? Oh, yeah. Reporter: When you see these test results, do you feel badly? Yes, of course. Reporter: You feel badly about it? Yes, of course I feel badly. If the -- Reporter: But what will you do to stop it? It's not good. Reporter: We repeatedly asked to talk to her manager, to the boss. But for two days now "20/20" has been calling, and we've been told he's out sick. But we did notice that on that shelf, three weeks ago full of that makeup labeled Mac, all of it gone tonight. Remember at home, check manufacturer's websites to find out where they sell the real thing. We ask you tonight? Have you ever been duped? Tweet us, using #abc2020. Have you worked hard for every job, every promotion
This transcript has been automatically generated and may not be 100% accurate.